Choose the Right Advisor - 10 Things You Should Know

Choosing the right Wealth Management Advisor is one of the most important financial decisions you can make. The following are some important things to look for that will assist you in making a wise choice:

1. Look for an advisor whose top priority is to serve your best interest, not the best interest of a bank or other outside party. Your advisor should be free to explore a variety of options available in the marketplace before selecting those that are best suited to meet your individual needs.

2. The firm you work with should follow a fiduciary standard of care - this is considered the highest legal duty that one party can have to another. This differs from the suitability standard offered by many brokerage firms. Suitability requires only that a product or service be suitable - it does not have to be in your best interest.

3. By choosing to work with a fee-based advisor you may avoid conflicts that can be inherent in a commission-based compensation structure. When your advisor is paid on commission it can be difficult to know whether the products they recommend are best for you or simply generate a larger commission for them.

4. Prior to making recommendations, your advisor should carefully consider your goals and risk tolerance. Recommendations should be made in terms of the impact they will have on the likelihood of success of the overall plan.

5. Be sure that your advisor maintains a high level of transparency, fully disclosing any and all potential risks or conflicts prior to implementing your plan.

6. Once your plan is in place, your advisor should continually monitor, rebalance and/or revise it as your situation or external market conditions change.

7. Look for a firm that delivers a high level of personal attention and cultivates strong, long-term relationships with clients.

8. Your advisor should provide a fully integrated strategy that addresses current needs as well as estate, tax and risk management issues.

9. Your advisor should have the support of a reputable team with many years of experience and professional knowledge behind him or her.

10. Be sure that your advisor is properly licensed and that his or her firm is registered with FINRA, the SEC and/or the appropriate state securities regulator.